Silver prices pull back from multiyear high ahead of the Fed
The post Silver prices pull back from multiyear high ahead of the Fed appeared on BitcoinEthereumNews.com. Silver prices remain vulnerable to the performance of the US Dollar and interest rate expectations, placing the Fed decision in the spotlight. Israel-Iran hostilities or comments may support upside momentum if the Fed’s rate cut expectations for September remain firm. XAG/USD steadies below $37.00 after reaching its highest level since 2012. Silver (XAG/USD) is trading lower on Wednesday, pulling back from multi-year highs after a sharp rally in June that saw monthly gains of more than 10%. The price peaked at $37.32 earlier in the session before slipping below the $37.00 psychological barrier, which now acts as immediate resistance. Profit-taking near long-term highs is contributing to the pullback. However, broader market focus remains on the Federal Reserve (Fed) policy announcement, which could significantly influence the short-term direction for Silver. The Fed is widely expected to keep rates unchanged at 4.25%–4.50%. However, attention will shift to the Summary of Economic Projections, which will show how officials view the path for interest rates, inflation, and growth. According to the CME FedWatch Tool, markets see a 65% chance of at least a 25 basis point rate cut in September. Fed Chair Jerome Powell’s press conference, scheduled for 18:30 GMT, could be crucial. If he signals confidence in disinflation and downplays external risks, expectations for a September cut may firm, supporting Silver. A hawkish tone would likely weigh on prices. The weaker US Dollar (USD) has also been a key driver. A declining USD makes Silver more affordable for foreign buyers, thereby increasing demand. At the same time, rising geopolitical tensions, particularly the Israel–Iran conflict, have renewed demand for safe-haven assets. In this context, Silver remains sensitive to changes in interest rate expectations, the US Dollar’s trajectory, and global risk sentiment. All three factors will be shaped by the Fed’s decision on Wednesday. Silver…
The post Silver prices pull back from multiyear high ahead of the Fed appeared on BitcoinEthereumNews.com.
Silver prices remain vulnerable to the performance of the US Dollar and interest rate expectations, placing the Fed decision in the spotlight. Israel-Iran hostilities or comments may support upside momentum if the Fed’s rate cut expectations for September remain firm. XAG/USD steadies below $37.00 after reaching its highest level since 2012. Silver (XAG/USD) is trading lower on Wednesday, pulling back from multi-year highs after a sharp rally in June that saw monthly gains of more than 10%. The price peaked at $37.32 earlier in the session before slipping below the $37.00 psychological barrier, which now acts as immediate resistance. Profit-taking near long-term highs is contributing to the pullback. However, broader market focus remains on the Federal Reserve (Fed) policy announcement, which could significantly influence the short-term direction for Silver. The Fed is widely expected to keep rates unchanged at 4.25%–4.50%. However, attention will shift to the Summary of Economic Projections, which will show how officials view the path for interest rates, inflation, and growth. According to the CME FedWatch Tool, markets see a 65% chance of at least a 25 basis point rate cut in September. Fed Chair Jerome Powell’s press conference, scheduled for 18:30 GMT, could be crucial. If he signals confidence in disinflation and downplays external risks, expectations for a September cut may firm, supporting Silver. A hawkish tone would likely weigh on prices. The weaker US Dollar (USD) has also been a key driver. A declining USD makes Silver more affordable for foreign buyers, thereby increasing demand. At the same time, rising geopolitical tensions, particularly the Israel–Iran conflict, have renewed demand for safe-haven assets. In this context, Silver remains sensitive to changes in interest rate expectations, the US Dollar’s trajectory, and global risk sentiment. All three factors will be shaped by the Fed’s decision on Wednesday. Silver…
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